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Banxico minutes point to upside inflation risks after 6.50% hold

Banxico cited heightened geopolitical uncertainty from the Middle East conflict as a factor making inflation forecasts more difficult.

Reported · Written up by our desk · Central Banks

The Bank of Mexico, or Banxico, kept its policy rate unchanged at 6.50% after its September meeting, according to minutes released Thursday.

In the minutes, board members said inflation risks remain tilted to the upside, and they flagged the Middle East conflict as a source of heightened geopolitical uncertainty that complicates inflation forecasting.

Banxico also reiterated its broader mandate to preserve the value of the Mexican peso and maintain inflation close to its 3% target, within a 2% to 4% tolerance band, using interest rate setting as its main monetary policy tool.

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